The Centre will hold extensive stakeholder consultations before finalising the contours of the second edition of the Production Linked Incentive (PLI 2.0) scheme for the textiles sector, Commerce and Industry Minister Piyush Goyal has said.
This indicates that the PLI 2.0 scheme for textiles, which is expected to be extended to manufacturers of garments, home textiles and embellishments made of all materials, including cotton, with lower investment and turnover criteria, could take some more time to be firmed up.
64 companies selected
In a review meeting of the PLI scheme for textiles on Tuesday, the Minister instructed officials to hold the stakeholder consultations and emphasised that PLI 2.0 would empower the sector to compete globally with top exporting countries like China and Vietnam, according to an official release.
The review meeting was attended by representative of 49 companies. Under the PLI scheme, part 1, a total of 67 applicants had applied out of which 64 were selected. A total of 55 companies have now formed participant companies.
“The review meeting was held to understand the implementation status of the projects under the scheme and for resolving their issues,” the release said.
The need for PLI 2.0 was felt as of the total corpus of ₹10,683 crore allocated for the scheme, a little more than ₹6,000 crore is likely to get used up as incentives for the 64 selected applicants under the first phase. This would leave a surplus of over ₹4,000 crore for the second phase, which is likely to be opened up to manufacturers of cotton-based textile products as well instead of being restricted to man made fibre (MMF) products and technical textiles. The proposed lower investment and turnover criteria is aimed at making smaller companies eligible for the scheme.
Goyal asked the beneficiaries to focus on improving the quality of textile products made in India and make them world-class. The USP of Indian textile industry must not be restricted to cheap labour, the Minister said.